Yahoo Finance Bag firm Longchamp sees pandemic hit UK revenues
The pandemic has dented UK sales at upmarket bag maker Longchamp, recently filed accounts show.
The UK division of the private French accessories company had to temporary close stores for chunks of 2020 due to lockdowns. The retailer said it lost some experienced staff with specific language skills, which “severely impacted” the business when branches could welcome back customers.
Accounts filed this month show turnover last year dropped 54.7% to £8.2 million. It recorded a £1 million pre-tax loss, compared with a £565,075 profit a year earlier.
Longchamp has three standalone branches in the UK, and is stocked by department store firms such as Harrods and John Lewis.
The firm’s strategic report said: “Covid-19 has negatively impacted 2020 figures but not affected continuity of operations. Management measures have been implemented to reduce Covid economic impact.”
It added that a five year business plan has been prepared to recover profitability at the latest in 2023.
The report by Longchamp (UK) said: “We expect 2021 to be in the same path as 2020 and rely on 2022 to regain full business activity.”
The company could not be reached for comment today.
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